Retirement is a time of excitement and anxiety regarding if your savings will last through your entire remaining life. Many retirees find that their spending is more costly in the beginning, and slows as they age. If you are sure you’ll be cutting back as you age, you can budget for these changes. Here is a short list of tips to help you get started on your courageous journey:
- Have a financial plan completed so you have an overview of what is available to spend from all of your retirement income sources.
- Prepare yourself for market conditions by determining what income sources to spend at designated times. In a down market, be able to adjust withdraws to accounts that are fixed income streams so you don’t liquidate sources that will rebound at some point.
- Review your investments every six to twelve months. Retiring doesn’t mean everything is on auto-pilot. This is the time to review investments even more closely.
- Evaluate your expenses. Take a look at your spending to determine what is left over for other items that aren’t necessary but enjoyable such as vacations and larger purchases.
- Assume lifestyle adjustments are a part of aging and may come sooner than expected. Health circumstances, market changes, and spending habits may need to be changed and updated in your financial plan.